VOL. 17 ISSUE NO. 23 | JUNE 8 – 14, 2011

jUNE 8, 2011

Developers put largest project in Cave Creek back together – Cahava Springs

CAVE CREEK – Touted as the most environmentally sensitive major development project in metro Phoenix, and the largest project in the Town of Cave Creek, Cahava Springs appears to be back on track. Yesterday the owners of Phases 2 through 5 closed on the repurchase of Phase 1 which, according to Mark Stapp, who has spearheaded the project from its inception, “This was an important step for us, its puts Humpty Dumpty back together again and allows the project to proceed in an efficient and cost effective manner when the time is right”.

Phase 1 was sold to an investment group from Wisconsin after a dispute brought construction of Phase 1 and all of the off-site improvements to a halt in late 2008. Over the past 3 years the owners have worked to reorganize the ownership of the land and create a structure that allows the project to move ahead in an orderly manner.

The underlying land is owned by Cahava Springs Corporation, a Minnesota company headed by Richard Hassel and Dennis Matheson. Hassel and Matheson have worked with Stapp and his partners since 2000 creating the Cahava Springs project which was stalled by the market and the dispute over Phase 1. “This is a unique parcel of land and has few if any competitive alternatives in the metro area and we want to see this developed the right way. This is a very positive step for us because it allows us to deliver what was initially promised to the Town of Cave Creek who has been very supportive throughout this process” said Dick Hassel.

Stapp says the group is now assessing the best approach to completing the project but cautions the market will dictate when actual development begins again. “We can concentrate on our plans for moving ahead but no one should expect us to start construction again immediately, the market just doesn’t support that right now. Our objective is to be ready. The land is owned essentially free and clear except for a small amount of seller carry back on Phase 1, so we can be patient and do this the right way.” Said Stapp.

Cahava Springs is a 982 acre project located in the Town of Cave Creek roughly 32nd Street and Rockaway Hills. The project is planned for 230 lots. In 2007 the developers gave 79 acres to the Town as a land bridge between Spur Cross Ranch and Cave Creek Recreation area, several miles of trails to the County and the Town and created a 130 conservation area. The project is fully entitled.